Effective GST at seven new-construction price points
Federal GST is 5% on new-construction sale price. The original New Housing Rebate (column 3) applies only below $450K. The new first-time buyer rebate (Royal Assent March 12, 2026) is column 4, with the net first-time buyer GST in the final column.
| Price | 5% GST | Original rebate | FTB rebate | Net for FTB |
|---|---|---|---|---|
| $300,000 | $15,000 | $5,400 | −$15,000 | $0 |
| $400,000 | $20,000 | $3,600 | −$20,000 | $0 |
| $700,000 | $35,000 | $0 | −$35,000 | $0 |
| $900,000 | $45,000 | $0 | −$45,000 | $0 |
| $1,000,000 | $50,000 | $0 | −$50,000 | $0 |
| $1,200,000 | $60,000 | $0 | −$36,000 | $24,000 |
| $1,500,000 | $75,000 | $0 | −$0 | $75,000 |
When GST applies to a Fraser Valley home purchase
Canada charges 5% federal Goods and Services Tax on the sale of newly constructed or substantially renovated residential property. Resale homes (used residential property) are GST-exempt. So if you're buying a pre-sale condo in Surrey, a brand-new townhouse in Albion, or a custom-built detached in Maple Ridge from the builder, GST applies on top of the purchase price. If you're buying a 10-year-old condo in Langley City from the previous owner, no GST.
The GST New Housing Rebate (GST190)
The federal GST/HST New Housing Rebate reduces the effective GST you pay on a new home, up to certain price ceilings:
- Full rebate of 36% of the GST paid when the home's fair market value is $350,000 or less. That works out to 1.8% effective GST instead of 5%.
- Phase-out between $350,000 and $450,000. The rebate amount slides down linearly.
- No rebate at or above $450,000 fair market value.
At Fraser Valley new-construction prices, this rebate is almost always zero or negligible because new builds typically exceed $450K. The thresholds haven't been updated to reflect 2026 Lower Mainland prices, which is why the new federal first-time buyer GST/HST rebate (below) became the meaningful program.
The new first-time buyer GST/HST rebate (2026)
On March 12, 2026 the First-Time Home Buyers' GST/HST rebate received Royal Assent. The program rebates up to $50,000 of GST (or federal HST portion) for eligible first-time buyers purchasing a newly built or substantially renovated home:
- Full rebate (100% of federal GST) on homes priced up to $1,000,000. At a 5% GST rate, that's a maximum $50,000 saved.
- Phase-out between $1,000,000 and $1,500,000. The rebate shrinks linearly.
- No rebate at or above $1,500,000.
The eligibility timeline: the purchase agreement must be entered into on or after March 20, 2025 and before 2031, with construction substantially completed before 2036. First-time buyer is defined as not having lived in a home owned by you or your spouse in the current calendar year or any of the four preceding years.
How the two rebates interact
The original GST New Housing Rebate (the $350K/$450K one) and the new First-Time Home Buyers' GST/HST rebate are separate programs with different eligibility rules. In practice, the original rebate is rarely meaningful at Fraser Valley new-construction prices because those prices typically exceed $450K. The new first-time buyer rebate, with its $1M full / $1.5M phase-out thresholds, is the one that actually delivers meaningful savings for Fraser Valley first-time buyers of new builds.
What you actually pay at Fraser Valley new-build prices
Three scenarios.
$700K Albion townhouse, first-time buyer (2026 purchase). GST is $35,000 (5% of $700K). The federal FTB GST rebate wipes out 100% of the GST on homes up to $1M, so the rebate is $35,000. Net GST paid: $0. The buyer also qualifies for the BC FTB PTT exemption, saving another $8K. Total cash savings vs same purchase pre-March-2026: $43K.
$1.1M Langley new townhouse, move-up buyer (not first-time). GST is $55,000. The original GST New Housing Rebate doesn't apply (price above $450K). The new FTB rebate doesn't apply (move-up, not first-time). Net GST paid: $55,000. The buyer may still qualify for the BC newly-built PTT exemption (saves up to $20K).
$1.2M Maple Ridge new detached, first-time buyer. GST is $60,000. The new FTB GST rebate phases out between $1M and $1.5M; at $1.2M the rebate is roughly $30,000. Net GST paid: $30,000. Plus the BC newly-built PTT exemption is in phase-out range. Cash savings are still meaningful but well below the full $50K maximum.
GST and pre-sale condos
Pre-sale condo purchases work the same way as completed new construction for GST purposes. The 5% GST applies at completion on the fair market value (which is normally the agreed purchase price). The federal rebates apply based on FMV at completion. Most developers quote pre-sale prices net of GST and add GST separately on the completion documents, so the price you see in a sales brochure is not the all-in number. Confirm with the developer's disclosure statement.
How to use this calculator
Plug the new-build price into the calculator above. It returns the 5% federal GST, then computes the original New Housing Rebate (if any) at the older $350K/$450K thresholds. The new FTB rebate calculation needs the eligibility input — the calculator separates that so first-time and move-up buyers see different effective GST. Book a 20-minute chat with the FRIVE team if you're buying a new construction home and want help mapping the federal and provincial programs to your situation.
Frequently asked questions
Does GST apply to resale homes in BC?
Generally no. Used residential property is GST-exempt. GST applies primarily to newly built homes, substantially renovated homes, and certain commercial residential properties (vacation rentals on short-term rental platforms, for example, can sometimes trigger GST issues).
Is GST added on top of the purchase price or already included?
Developers vary. Some quote prices "plus GST" with the tax added on completion. Others quote "GST included." Confirm in writing before signing — the difference is a meaningful share of your closing-day cash.
What's the BC PST on a new home purchase?
BC does not charge PST on the sale of newly built residential property. There is no BC equivalent of the federal GST on home purchases. (PST does apply to the CMHC mortgage insurance premium and to certain construction materials, but not to the home purchase itself.)
Do I qualify for the new federal first-time buyer GST rebate?
You qualify if you and your spouse or common-law partner have not lived in a home either of you owned during the current calendar year or any of the four preceding years, you buy a newly built or substantially renovated home as your principal residence, the agreement was signed on or after March 20, 2025 and before 2031, and construction is substantially completed before 2036.
Can I claim both the original GST rebate and the new FTB rebate?
The programs interact in specific ways. For first-time buyers, the new FTB rebate generally replaces or supersedes the original rebate for Fraser Valley prices. Your notary or accountant will file whichever produces the larger refund for your specific situation.
When do I actually get the rebate money?
For most new-construction purchases, the developer assigns the rebate to themselves at closing, which means the rebate is credited against the purchase price at completion. You don't receive a cheque; the price you pay is net of the rebate. For some self-builds and substantial renovations, you claim the rebate yourself after the fact via a CRA form.
Does GST apply to assignment fees?
Often yes. CRA's position is that an assignment of a pre-construction contract is a taxable supply, and the assignment fee may be subject to GST. The rules are complex and depend on whether the original purchaser was buying as a principal residence or as an investment. Get tax advice before assigning a pre-sale contract.
What's the difference between GST and the PTT?
GST is federal, 5%, applies to newly built homes. PTT is provincial, bracketed by price, applies to every change of title in BC. They're entirely separate programs administered by different governments. See our PTT calculator for that side of the math.
How does the rebate stack with the BC newly built exemption?
The federal GST rebate is one program; the BC newly built PTT exemption is another. Both can apply to the same purchase. A first-time buyer of a $900K newly built Fraser Valley home in 2026 can claim the full federal GST rebate (saving $45K) AND the full BC newly built PTT exemption (saving $16K on a $900K PTT). Combined cash savings: roughly $61K.
What if the home price changes between contract signing and completion?
Most pre-construction purchase agreements have provisions for price adjustments. GST is calculated on the actual final price at completion. The federal rebates apply based on that final price. If your price moves above a threshold (e.g. from $999K to $1.05M), the new FTB rebate phase-out kicks in and you'd get a partial rebate instead of the full $50K.
Sources
- Canada Revenue Agency — GST/HST New Housing Rebate (RC4028). canada.ca/rc4028
- Canada Revenue Agency — First-Time Home Buyers' GST/HST rebate. Royal Assent March 12, 2026. canada.ca/fthb-gst-hst-rebate
- Government of BC — Property Transfer Tax (separate from GST). gov.bc.ca/property-transfer-tax
- FRIVE journal — Closing costs for a first home in the Fraser Valley. closing-costs-first-home-fraser-valley
